SYDNEY: Private equity giant Blackstone Group cancelled the sale of a A$3.5 billion ($2.8 billion) Australian shopping mall portfolio after it was unable to find a buyer, a source familiar with the matter said on Tuesday.

"They pulled the sale process last week. The rationale was that with the level of market demand, they decided to focus on active management," said the source, who asked not to be named because they were not authorised to comment publicly

The U.S. group put its Australian portfolio of 10 shopping centres, mostly in Sydney and Melbourne, on the market in April. ($1 = 1.2582 Australian dollars) (Editing by Richard Pullin)

Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.